7.—(1) Subject to the preceding provisions of this Order and to paragraph (2), on the transfer date—
(a)all rights and liabilities and any records of the Residuary Body relating to any function which by virtue of this Order or otherwise becomes or has become a function of Bradford shall vest in Bradford; and
(b)all remaining rights, liabilities and records of the Residuary Body shall vest in Wakefield to be held for the benefitof, or discharged on behalf of, all the local councils.
(2) Paragraph (1) shall not apply to any right or liability of the Residuary Body —
(a)in relation to any contract of employment other than those mentioned in article 3(1);
(b)arising in respect of the proceedings referred to in article 5(4); or
(c)in relation to Yorkshire Enterprise Limited or any of its subsidiary companies.
(3) For the purposes of paragraph (2)(c) “subsidiary companies” shall be construed in accordance with section 736 of the Companies Act 1985 (1).